Things to Avoid While Buying a New Home

In the rush of excitement that comes with an accepted offer and a "yes" from the lender, some homebuyers make the mistake of carrying their enthusiasm straight to the mall or furniture store. It's wise to remember that until your keys are in hand, your lender is watching your finances very closely. Below you'll find a list of things to avoid during this critical time of your home purchase.

Don't make expensive purchases. Although you may be listing ways to turn your new home into a showplace, try to stay away from big ticket purchases like appliances, electronics, or furniture. We also recommend that you keep away from vacations and car purchases until your loan closes. Your lender may send up red flags if you buy your appliances on your credit cards during your loan process. It's also a bad idea to make those huge purchases using cash. Lending Institutions are examining your cash on hand when considering your loan.

Don't look for a new career. Consistency in your work history is a good thing to lending institutions. Finding a new career (particularly one with a better paycheck) may not affect your ability to qualify for a loan. However, if you switch careers before you qualify, your loan process could fail or be stalled.

Don't switch banks or move finances around in your accounts. Bank statements from the last two or three months for your accounts (checking, savings, money market, and other accounts) will likely be analyzed as the lender makes decisions regarding your loan application. In order to eliminate fraud, lenders require a clear and consistent picture of how you earn your money and where any additional money comes from. Even for practical purposes, moving around funds or changing banks might make it difficult for the lending institution to confirm your account history.

Don't give money directly to your seller (commonly in cases of "for sale by owner") to be considered earnest money. As a rule, your good faith deposit belongs to you, not to the seller up until the sale is final. Some sellers may not realize that the good faith funds is to be used for your expenses upon closing. We recommend that you put the deposit into a trust account, or get an attorney to hold it until the deal closes. Your contract should dictate to whom the funds go if the transaction does not go through.

Amity Mortgage LLC can walk you through the pitfalls of getting a mortgage. Call us: 2037296681.